Shares of Comera Life Sciences (NASDAQ:CMRA) are up by over 30% following a flurry of insider purchases. As the name suggests, Comera is a life sciences company that seeks to improve traditional intravenous injections through its SQore platform. SQore tackles formulation challenges through “novel, patented excipients” that may improve the ease of administration. Comera partners with pharmaceutical and biotechnology companies to help improve the delivery of medicines and to develop a portfolio of proprietary SQore therapeutics.
Before September, no insiders had purchased shares of CMRA stock in 2022. Now, even the CEO is buying shares. Let’s get into the details.
Insiders Are Buying CMRA Stock
CFO Michael Campbell started off the flurry of insider purchases. On Sept. 8, he purchased 25,000 shares at an average price of $2.07. Before the purchase, he owned zero shares of his company. The next day, Chairman and CEO Jeffrey Hackman purchased 47,600 shares at an average price of $2.06. Like Campbell, Hackman owned zero shares before the purchase. Then, on Sept. 12, Director James Sherblom picked up 50,000 shares at an average price of $2.03. After the purchase, Sherblom now owns a total of 371,163 shares.
In addition, it should be noted that none of the above three purchases were enacted via a prearranged 10b5-1 trading plan. Insiders often buy or sell shares of their own company using this plan in order to avoid accusations of insider trading. It’s unclear the exact reason for the purchases, although insiders only buy shares of their own company for one reason: they believe the price will go up.
On Aug. 31, the company announced that it had entered into a purchase agreement with Arena Business Solutions. Pending U.S. Securities and Exchange Commission (SEC) approval, Comera will have the right to sell Arena up to $15 million shares over a three year period. Hackman added: “Strengthening our balance sheet will help us achieve our strategic objectives in the near-term, and we are grateful for Arena’s commitment to Comera’s success.”
Arena will also have an option to purchase an additional $15 million to $30 million of shares. Comera will use the proceeds toward “working capital and general corporate purposes.”
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.